Perplexity AI, the US-based synthetic intelligence start-up, has made an unsolicited $34.5 billion (about £27.3 billion) provide to amass Google Chrome from mum or dad firm Alphabet, shocking the worldwide tech business.
The proposal comes amid ongoing antitrust scrutiny of Google‘s dominance within the browser market. Perplexity says the acquisition would assist handle regulatory considerations, however analysts have questioned each the seriousness and feasibility of the bid.
Speedy Rise of Perplexity
Based in 2022, Perplexity AI has shortly grow to be a notable challenger within the AI-powered search engine market. The corporate’s backers embrace Jeff Bezos, Nvidia and SoftBank, and it was valued at $18 billion (roughly £14.2 billion) as of July 2025, based on Bloomberg. Its core product is an AI-driven search engine providing conversational solutions reasonably than conventional search outcomes.
In 2024, Perplexity launched its personal browser, Comet, as a part of its technique to compete immediately with Google and Microsoft, the Financial Times reported. The agency says buying Chrome would give it quick entry to an enormous person base, accelerating its transfer into mainstream browser adoption.
Particulars of the $34.5B Provide
Perplexity’s proposal frames the acquisition as a possible treatment to antitrust actions. The US Department of Justice has beforehand recommended that Google might be required to divest Chrome to handle alleged monopolistic practices in search and browser markets, Investopedia reported.
Beneath the bid, Perplexity says Chrome would stay unbiased, with the Chromium codebase staying open-source. It has additionally pledged to take a position $3 billion (approx. £2.37 billion) over two years to improve the browser’s infrastructure and recruit further engineering expertise.
Investor and Market Reactions
Market response has been combined. Some analysts informed Reuters the provide is a ‘daring’ sign of Perplexity’s ambition to place itself alongside the largest names in know-how. Others query how the corporate might finance a deal value nearly double its present valuation.
Shares in Alphabet rose 1.2% in after-hours buying and selling following information of the bid, whereas privately held Perplexity’s valuation was reportedly unchanged, based on MarketWatch. Expertise publication The Information famous that some business observers consider the proposal could also be aimed toward producing publicity reasonably than securing a sale.
Clarify? They constructed their very own browser, then provide to purchase one thing they’ll’t afford and google would by no means promote?
— T.Fraser (@t_fraser_) August 12, 2025
it is a pure publicity stunt. why would google promote for something lower than a $100Bn
— Alchemist Investor (@alchemy_invest) August 12, 2025
Potential Trade Influence
If accepted, the acquisition might have main implications for browser and search engine competitors. Chrome at the moment holds an estimated two-thirds of the worldwide browser market, based on Global StatCounter. Analysts say a switch of possession might have an effect on promoting revenues, search engine integration and aggressive dynamics with corporations equivalent to Microsoft, Apple and Mozilla, Fortune reported.
Whereas neither UK nor EU regulators have referred to as for Google to divest Chrome, each have energetic investigations into its promoting practices and browser-related information dealing with. Any sale would doubtless set off recent scrutiny on either side of the Atlantic.
A Excessive-Profile Gambit
Perplexity’s $34.5 billion bid underscores the shifting aggressive panorama as AI corporations search to problem established tech giants. Whether or not a calculated negotiation tactic, an try to draw funding or a publicity transfer, the provide has sparked widespread debate within the business.
For now, there isn’t a indication that Alphabet will interact with Perplexity’s method. The proposal stays a high-profile assertion within the escalating rivalry between conventional search suppliers and AI-driven challengers.
